Navigating economic headwinds: proven strategies for durable cost reduction in oil and gas
Scott Hastie A * , Quinton Crew A and Tim Wall AA
Scott Hastie leads the Oil, Gas and New Energy practice at dss+. With over 20 years of experience leading complex transformation programs, including mergers and acquisitions integrations, he advises energy companies on achieving significant bottom-line results. He is also a respected executive leadership coach, helping leaders drive business transformation. He has led over 30 consulting engagements across Australia, North America and Asia. |
Quinton leads dss+’s Oil, Gas and Energy practice in Australia, specialising in helping clients achieve significant and sustainable cost reductions. His 20-year career in the natural resources sector includes 9 years at BP, where he gained extensive experience in operational efficiency, cost management and large-scale transformation programs. He brings a practical, results-oriented approach to helping clients optimise their operations. |
Tim Wall is a Senior Advisor at dss+, bringing over 40 years of global leadership experience across the oil, gas and manufacturing industries. Most recently, he served as President Global Manufacturing and HSE for the Incitec Pivot Group and previously as General Manager, Manufacturing at Caltex Australia. His extensive career includes over 25 years in senior roles with BP in Australia and the UK. Tim has a proven track record of delivering transformational outcomes in culture, risk management, operational excellence and ESG/sustainability at both the Company Director and Global Executive level. |
Abstract
The Australian oil and gas industry faces significant challenges – including ageing assets, regulatory delays, fluctuating market prices, declining production and pressure to achieve net-zero emissions – leading to a strong focus on cost reduction. While cost reduction programs are common, sustained success is rare. Research suggests that only ~10% of such programs maintain results after 3 years. This abstract explores key factors contributing to successful and sustainable cost reduction. It outlines a structured approach, emphasising the importance of aligning cost reduction with strategic objectives, conducting thorough upfront diagnostics, prioritising key initiatives, clarifying accountabilities and embedding robust cost management processes. Drawing on a case study from a global oil and gas company where this approach delivered US$90 million in operational cost reductions and US$20 million in capital expenditure savings, the abstract provides practical guidance on achieving and sustaining significant cost improvements through leadership development, process and systems enhancements, and fostering a culture of operational discipline.
Keywords: ageing assets management, cost optimisation, demand-side cost drivers, energy transition, oil and gas industry Australia, operational efficiency, predictive maintenance, strategic cost management.
Scott Hastie leads the Oil, Gas and New Energy practice at dss+. With over 20 years of experience leading complex transformation programs, including mergers and acquisitions integrations, he advises energy companies on achieving significant bottom-line results. He is also a respected executive leadership coach, helping leaders drive business transformation. He has led over 30 consulting engagements across Australia, North America and Asia. |
Quinton leads dss+’s Oil, Gas and Energy practice in Australia, specialising in helping clients achieve significant and sustainable cost reductions. His 20-year career in the natural resources sector includes 9 years at BP, where he gained extensive experience in operational efficiency, cost management and large-scale transformation programs. He brings a practical, results-oriented approach to helping clients optimise their operations. |
Tim Wall is a Senior Advisor at dss+, bringing over 40 years of global leadership experience across the oil, gas and manufacturing industries. Most recently, he served as President Global Manufacturing and HSE for the Incitec Pivot Group and previously as General Manager, Manufacturing at Caltex Australia. His extensive career includes over 25 years in senior roles with BP in Australia and the UK. Tim has a proven track record of delivering transformational outcomes in culture, risk management, operational excellence and ESG/sustainability at both the Company Director and Global Executive level. |
